Ppt on manufacturing industries by Manowara Chowdhury
1.
2. Manufacturing Industries
Manufacturing- Production of goods in large
quantities after processing from raw material to more
valuable products.
In short, transformation of raw material(primary) into
finished goods.
Ex- Sugar(Sugarcane), Paper(Wood) Iron and steel etc.
4. Industries- Initial meaning of factory- entire
establishment by British was called ‘Factory’ and the
people were called factors.
Group of Factories- Industries.
Factory Industry
An unit where only 1 Combination of many steps of
step of process is done. a process takes place.
Single unit Group of Factories.
5. Industry
Manufacturing
- Value Addition
Mining
- Processing in mining
also.
- Extraction of mineral
and process it thus called
industry.
- Use of
machinery,labour,comm
ercialisation and
investment.
6. Per capita income and national income were
considered the parameters for the development of
country but it is also measured by the development of
manufacturing industries.
(Others- metallurical industries(above
mentioned),import and export,employment,HDI,
National Income)
7. Significance
Utilisation of Resource.
Employment
Balanced Sectoral Development.
Increase in National Income or Foreign exchange
Regional Balance
Add value to goods
Modernise Agriculture
8. Interdependence of Agriculture
and Industries
Not exclusive , go hand in hand.
Contribution of agriculture to Industry:
- Raw Material like jute ,sugarcane , cotton etc.
- Good market to the industrial products.
Contribution of Industry:
- Provides inputs like fertiliser , pesticides, insecticides etc
- Agricultural implements which boost up yields- machines ,
tools etc
- Increase market value of agricultural products by
processing and also raise the demands for raw material.
- Reduce pressure on agriculture by absorbing extra labours.
9. Contribution of Industry to national Economy.
27%(Industry)
East Asian – 25% to 35%
Growth Rate of GDP- 7%
Desired Growth rate-12%
Since 2003- Gr. Rate – 9 to 10%
With appropriate policy interventions by govt. and efforts by the
industry to improve productivity , economist predicted that
industry can achieve its target by next decade.
NMCC has been set with this objective.
Manufacturing
(17%)
Mining,Quarrying,Ele
ctricity and Gas-10%
10. Industrial Location
Geographical Non-Geographical
Factors Influenced
Availability of
raw material
Climate
Cheap and Skilled
labour
Capital
Investment
Transportation &
Communication
Power
Market
Govt. Policies
Rarely possible to find all the factors at
one place , thus manufacturing industries
tends to locate at the most appropriate
where all the factors are either available or
can be arranged.
11. Industrialisation and Urbanisation
go hand in hand.
After an industrial activity starts,urbanisation follows
and vice versa.
Sometimes industries are located in or near the cities.
Thus Industrialisation and Urbanisation go hand in
hand.
Ex- Labour , settlement, transportation and
employment leads to city(urbanisation) and City
provides markets ,services such as banking ,insurance
,transport ,labour , consultants and financial advice to
the industries.
12. Many industries tend to come together to make
use of the advantages offered by the urban centres
known as Agglomeration Economies.
In pre-independence ,most of the manufacturing
units were located in places from the point of view
of raw material, overseas trade such as Mumbai,
Chennai, kolkata etc. Eventually emerged as
developed urban centres surrounded by
hinterlands.
Now it is much diversified due to capital
investments.(Things can be arranged by cost).
13. Industrial-Market Linkage
INPUTS
Raw material/other factors of
production- land ,labour ,capital
,Entrepreneur ,infrastructure.
Transport
Factory
OUTPUTSs(PRODUCTS)
Transport
Market
Money
Key decisions to set up industries- Least cost , Govt. policies ,Skilled labour.
14. Classification of Industries
Raw
Material
Main Role Capital
Investment
Ownership Bulk and
Weight of
R.M and
finished
goods
Agro based
Mineral Based
Forest Based
Marine Based
Basic or Key
Industries
Consumer
Industries
Large Scale
Ind .
Small
Scale Ind.
Cottage
Industries
Public
Private
Joint
Cooperative
Heavy
Ind.
Light
Ind.
15. On the basis of source of Raw Material:
• Agro based Ind.- obtain raw material from Agriculture
e.g.- cotton ,woollen ,jute ,rubber ,sugar , tea etc
• Mineral based Ind.- obtain raw material from minerals
like Iron and Steel ,cement ,aluminium ,petro-
chemical industries.
• Forest based Ind- obtain raw material from forest e.g.-
Lumbering, paper, match factory , cork and bidi
factories.
• Marine based- raw material from sea and ocean e.g.-
fishing, cosmetics, petrol or oil refineries.
16. According to main Role:
• Basic or Key - Which supply their final products as raw
materials to manufacture other goods e.g- Iron and
steel ,copper smelting etc.
• Consumer Industries- which produce goods for direct
use by consumers- sugar , toothpaste, paper,sewing
machines etc.
17. On the basis of capital Investment: (limits has changed
over a period)
• Large Scale- If huge investment/asset more than 1
crore( now 5 crore) used in any industry ( plus large
number of workers)
• Small Scale- If the maximum is upto 1 crore then small
scale.
• Cottage Industry- Family members work and very small
investment, work at home.
18. On the basis of Ownership:
• Public- owned and operated/maintained by govt.
agencies e.g.- BHEL,SAIL
• Private- owned and operated by an industry or group of
industries. e.g.- TISCO,Bajaj Auto ,Dabur etc.
• Joint Sector- Which are jointly run by the state and
industry or group of industries. E.g.- OIL( oil India Ltd),
Maruti etc
• Cooperative Sector- owned and operated by producer or
suppliers of raw material,workers or both. They pool in
the resources and shares the profits and losses
proportionally such as sugar in Maharashtra,Coir industry
in Kerala.
19. Based on Bulk and Weight of Raw Material and
Finished goods:
• Heavy Industry- such as Iron and Steel industry.
• Light Industry- that use light raw material and
produce light goods such as electrical industry.
20. Agro Based Industries( Industries
which use agricultural produce as raw material)
Cotton
Textile
Sugar
Industry
Edible oil
21. Textile Industry(Cloth produced from a
fabric)
It is the second largest after agriculture( in terms of people involved)
Includes- cotton , jute , silk , woollen etc
Unique position in Indian economy due to significant contribution:
1.Industrial production 2. Generation of employment 3.Foreign
Exchange
SIGNIFICANCE
Adds 14% to the industrial production and 4% to GDP.
Employment to 35 million and allied industries- 90million.
Gross export over 30% and import-7.8%
Self-Reliant(From raw material to highest value added production)
23. Cotton Textile Industry
• In ancient times, textile were produced with hand
spinning and handloom weaving technique.
• After 18th c,powerlooms came into use.
• Traditional industries suffered a setback during colonial
period- could not compete with mill made cloth from
England.(Cheap)
The Ist Textile mill was established in Mumbai in 1854
Two WW in Europe- demand for cloth- gave boost to the
development of cotton textile.
24. Cotton and Human made mills in India.
1600(1946)
Apart ,several 1000 factories with 4 to 10 powerlooms.
80% private
20% Public+
Cooperative
25. Proximity/location
C.T industrially concentrated in cotton growing belt of
Maharashtra and Gujarat- Mumbai Largest Centre.
• Climate- Humid(moist) conditions essential for spinning
thread.
• Raw material- Availability of Raw Material- Black cotton belt.
• Cheap labours- Mumbai and Gujarat- densely populated- both
skilled and unskilled labours available.
• Market- Ready market in Mumbai both for india and Abroad.
• Transport- important for export finished goods and import
machinery and long staple cotton(port facilities)
C.T stands for Cotton Textile
26. Significance/ Contribution to other sectors
Close association with Agriculture- a. Provide living to
farmers. b. Cotton ball pluckers c. Workers engaged in
ginning ,spinning ,weaving ,dying ,packing ,sewing,
tailoring etc.
Supply Industry- demand supports other industry
Chemical and dyes ,mill stores , packaging material and
engineering works.
• Employment- a. Provide employment to skilled and
unskilled. b . Khadi provides employment to weavers in
cottage industry.
• GDP- Export , trade, foreign exchange.
27. - It is highly decentralized
a. To incorporate
traditional skills
b. Designs of weaving in
cotton ,silk ,zari ,
embroidery etc.
- Requires moisture in the
air so that yarn should
not break.(Coastal areas)
- Spinning is centralised at
one place.)
Textile
Spinning Weaving
28. Steps involved in the process-
1. ginning 2. Yarning
3. Machine weaving 4. Manual
weaving
29. • India has world class production in spinning but
weaving supplies low quality of fabric due to lack of
high quality yarn.
• The handspun khadi provides large scale
employment to weavers in their homes as a cottage
industry.
• Why is it imp for our country to keep mill sector
lower than power and handloom?
a. Employment b. Addition of traditional
skills(improve the vocational skills) c. Wide Variety.
30. Exports- Yarn exports to Japan and importers of cotton
goods from India are USA ,U.K ,Russia ,France ,Nepal
etc.
Economic Drawbacks
Mainly exports the yarn , not the fabric.(import)
India has the 2nd largest installed capacity of spindles in the
world after China.{34m (2003-04)}
Share 1/4th of World’s trade.
Spinning is competitive at global level and capable of using all
fibres we produce but not in weaving,knitting,processing units
use high quality yarn produced in country.
Some large and modern factories in these segments but
fragmented units which cater the local market.
Less value added products , sell the raw material at low cost.
31. Problems/Challenges/Disadvantages
Raw material- Low quality.
Low Quantity- 10 % of world’s output- low foreign exchange.
Uncertainty in market like prices and demands.
Lack of Power- Erratic- not able to use good machinery, power
cuts , load shedding.
Obsolete Machinery- Old machines in use and lack of updated
technology.
High Cost- not able to compete with international market due
to cost.(mill production)
Stiff Competition- In quality , quantity and cost with synthetic.
Centralization of spinning(less no. of industry due to
climatic conditions).
Negligence shown by the Govt.
Low Productivity- Unskilled labour.
SOLUTION- Reverse conditions.
34. JUTE TEXTILES
Intro- India- Largest producer of raw jute and jute goods.
Stands 2nd as exporter after Bangladesh.
There are 70 jute mills in India.
Most of them are located in WB mainly along the banks of
the Hugli river, in a narrow belt(98 km long and 3 km
wide).
The first jute mill was set up near Kolkata in 1859 at Rishra.
After Parttion (1947), Jute miils remained in India and Jute
producing areas went to Bangladesh.
35.
36.
37. Significance
• Labour Intensive- Provide employment to skilled as well as
unskilled workers- a. 2.61(3.7) lakh workers
b. 40 lakhs farmers engaged in jute and Mesta production and
associated industries.
• 2nd largest exporter and accounts for 20% of total export
earning.
• Range of trading product which brings foreign exchange.
____________________________________________________
Areas- Largest concentration along the banks of Hugli river-
84% jute production.
Most of the mills are located within the distance of 64km
from Kolkata along the bank of Hugli.
38. Locational Factors(Hugli Basin)
• Raw Material- a. Proximity of the jute production area.
b. Fertile Ganga- Brahmaputra delta grows about 90% of I’s
jute and provide to mills.
• Power- Coal is requires for power obtained from Raniganj
and Asansol coal fields.
• Transportation- Cheap water transportation is also
available. Area is also served by a network of roads,
railway and waterways to facilitate the movement of raw
material to the mills.
• Water- Abundant water is also available from Hugli for
processing(retting), washing and dyeing jute.
39. Locational Factors(Hugli Basin)
Port City- Kolkata is a big port which helps in
importing of machinery and exporting the jute
finished products.
Labour- High density of population in WB , Bihar ,
Orissa , U.P provides cheap labour.
Finance/Market- There is flow of capital. Urbanised
centres provide banking , insurance available ,
facilities for export of jute goods.
________________________________________________
Market- U.S.A , Canada , Russia , UAE , U.K and
Australia.
40. Problems/Challenges
• Raw Material- After Independence, most of the jute producing
areas went to Bangladesh resulting in acute shortage of raw
jute. Since independence , it still falls short of our
requirements.
• International Competition- India has to face stiff competition
from Synthetic packaging material and from other
competitors like Bangladesh , Brazil , Philippines , Egypt etc.
• Less Demand- Due to synthetic subsitutes in domestic as well
as international market the overall demand for jute products is
gradually declined.
• High Prices- Indian jute is being competited out in
international market due to high prices( Use of obsolete
machinery , existence of inefficient and uneconomic units,
unreliable supply position).
• Low Productivity- Per hectare production, unskilled labour.
41. Solution
Indian govt. has taken following steps:
• NJP- In 2005,National Jute Policy was formulated with the
objective of - a. Increasing productivity b. Improving quality c.
Ensuring good prices to the jute farmers d. Enhancing the yield
per hectare.
• Compulsion/Rules - Govt has made it mandatory to use jute
packaging.
• Demand- To stimulate demand , products need to be
diversified(bags , furniture , cloths ,Rags , Gunny bags , Purse
etc).
• Eco-friendly- Growing global concern for environment friendly
, biodegradable material has once again opened the
opportunity for jute production.
42. Sugar Industry
• Intro- Sugar produced from sugarcane , sugarbeet.
• By- Products- a. Gur (Jaggery) b. Khandsari c. Crystallized
Sugar d. Molasses or black treacle( viscous by product
produced from refined sugarcane or sugar beet.
• India stands 2nd as a world producer of sugar but occupies
1st in producing Gur and Khandsari.
43. Significance/Importance
2nd largest agro based industry after cotton.
3rd largest industry in terms of its contribution to the net value
added by manufacturing.
Employs more than 3.25 lakhs workers,indirect – 25million
cultivation.
Important source of excise duty for central govt.
460 sugar mills.(662- recent)
_______________________________________________
Distribution- U.P , Maharashtra , T.N , Bihar- major producers.
Two areas of concentration- 1.U.P , Bihar, Haryana , Punjab in
North.
2. Maharashtra, Karnataka, T.N, Andhra Pradesh in South.
44. Locational Factors
Raw Material- R.M is very heavy and perishable.
Sugarcane cannot be stored for long as loss of sucrose
Sugarcane cannot be transported over long distances
as it may dried on the way {Haulage(transportation of
goods) reduces its sucrose content}.
Thus, mills are established near the areas of cultivation.
Q- Why most of the mills are under cooperative
sector?
45. Difference between North and
South India sugar industry.
Marked difference as of better conditions prevailing in
Peninsular India , the sugar industry gradually shifting from
north to south India. Previously N.I used to produce about 90%
of India’s sugar which is reduced to 35 to 40%.
• Climate- Sugarcane is a tropical crop. Peninsular India has
tropical climate which gives higher yield per unit area as
compared to North India.
• Higher Sucrose- Due to favourable climatic conditions , the
sucrose content is also remain higher in tropical variety of
sugarcane of South.
• Long Crushing Period- The crushing season is longer in South
than north . e.g.- Crushing season is of 4 months while in
South, its 7 to 8 months.
• Better management- The cooperative sugar mills are better
managed in south than north.
46. Problems/Challenges.
Low yield- per hectare yield is very low than other
producing countries.
Short Crushing Season- Manufacturing sugar is a seasonal
phenomena with short crushing season vary from 4 to 7
months . Mill workers remain idle during remaining
period of the year thus create financial problem for the
industry as a whole.
High Cost of production- High cost of sugarcane ,
inefficient technology , uneconomic process of
production and high excise duty results in high cost of
production.
47. Old and Obsolete machinery- Machinery used in Indian
mills particularly of U.P and Bihar is old and obsolete.
Under-utilisation of by-products- By-products of sugar
industry are not properly utilised. After crushing,
Baggasse is either burnt as a fuel or used as fodder.
Delay of Transportation- loss of sucrose leads to limited
production.
48. Solution
Diversified Sources- use of beetroot , dates etc
New technology
Good Transportation- network of roads and railways
etc.
Export more and improve trading system.
Skilled Labour- Training
Utilisation of leftovers/end products.
49. Mineral Based Industry
Industry which use mineral or metal as raw material. Also
known as backbone of a country e.g.- Iron and steel , heavy
engineering and electronic etc.
5 yr plan.
What makes it a basic or key industry/Heavy Industry?
• Heavy Industry-a. Raw material and finished products both
heavy and bulky.
b. It carries high cost of transportation (Railway/waterway).
• Basic/Key- a. It lays the foundation of other industry-heavy
, light ,medium depend on it for raw material or machinery.
b. Backbone for GDP/Economy.
c. Infrastructural development. d . Transportation- vehicles,
Automobiles.
50. Large Scale- a. Huge Capital Investment. b . More
employees. c . Use large area and machinery.
Public Sector- Run by govt. except few like Tata.
i.Cost of production. ii. Huge investment. iii .Basis of Indian
economy. Iv. Defence. v. Employment vi. Use of scrap
metal vii. Research and development.
________________________________________________
Steel is needed to manufacture a variety of engineering goods
, defence , medical , consumer goods etc
Production and consumption of steel is often regarded as the
Index of Country’s development.
Raw material of Iron and steel industry.
Iron Ore: Coking Coal: Limestone- 4:2:1
(Coking coal and limestone- used for smelting, in furnance
and Manganese to harden the steel).
51. • Where should the steel plants be ideally located/
locational factors??
Raw material- Iron ore , coking coal , limestone and
manganese required heavy raw material thus
localisation controlled by the availability of raw
material.
Transport- an efficient network for their distribution to
the market and consumer.
e.g.- Chota nagpur plateau( Jh,O,W.B,Ch)
Max concentration of Iron and steel(Public sector
mostly)
Durgapur , Jamshedpur , Raurkela , Bokaro ,Burnpur.
52. Why the Iron and steel industries are located in Chotanagpur?
- Low cost of Iron ore.
- High grade of raw material in proximity.
- Abundant cheap labour.
- Power- Coal(supplied by Jharia,Raniganj,Bokaro,Girdih)
- Transportation(Cost effective)
- Home Market
o Vishweswarya Iron and steel works at bhadravati is major
exception located far away from coal producing areas. Uses
electricity from Saravati Power project.
____________________________________________
o Public Undertaking- collaboration with East and West
Germany , U.K and Russia.
53. Production of steel-72.2 m tons,ranks 4th in crude steel.
Largest production of sponge Iron. Inspite of quantity of
production of steel,per capita consumption per annum is
32kg.(World average- 217kg)
There are 10 primary integrate and many mini steel plants
in India( a large no. of decentralised secondary unit
known as Mini Steel plants).
54. Integrated Steel Plants
Size- They are established on
large scale and located near
raw material.
Usage- They use good quality
of Iron and steel .
Technology- They use
advance technology.
Capital- Large scale.
Finished Products- Fully
developed and good quality.
Being integrated , everything
happens in a single complex
from steel making , rolling
and shaping.
Mini Steel Plants
They are established on small
scale and located at any place.
They use up electric
furnances , steel scrap and
sponge iron.
They use less developed
technology , have re-rollers
that use steel ingots as well.
Small Scale
Produce mild and alloy steel
of given specifications.
Not every step happens in the
same complex.
55. Public steel undertaking market their steel through
SAIL established in 1974 while TISCO markets its
production through Tata Steel.
Why India still failed to perform to its potential?
High costs and limited availability of coking coal.
Lower productivity of labour.
Irregular supply of power.
Poor Infrastructure.
Low investment in Research and development.
56. Q-Why less per capita income?
More emphasis on export.
High cost of production
Slow development
Govt. Policies- give priority to the welfare of people.
________________________________________________
To improve the production,govt. of India had taken following
steps:
a. Govt has adopted a new economic policy of liberalisation ,
privatisation and globalisation(interaction of economy).
b. Govt. is promoting FDI in the sector.
c. Govt. has launched duty exemption scheme.
d. Allocate more reserves
e. Research improved- technology and discovery.
f. Vocational training to individuals
57.
58. Automobile Industry
Fast Growing- provide vehicle for quick transport of
good services and passengers.
Truck,buses,cars,motorcycles, scooters etc
manufactured in India- one of the largest in the world.
Total production- financial year 2015- 23.96% with a
growth rate-2.5%
GDP- 7.1%, Two-wheeler- 81%,Export increased by 15%.
After 15-20yr, vehicles quantam production.
Factors for growth-Liberalisation and new contemporary
models stimulated the demands for vehicles in the
market.
59. After 1992,high percentage of growth rate:
• Automobile industry was delicenced in 1991 i.e. No
licence is requires for setting up any unit of
manufacturing.
• 100% FDI is permissible and it also brought new
technology and aligned with global development.
• Due to loan and other finance facilities demand has
risen.
60. Electronic and IT
T.V, Radio,Computer,Radars etc
Silicon Valley- Ist in World
Bangalore- Capital of electronics in India.
Centres-18 software technological parks provides single window
service and high data communication facility to software experts.
Importance- 1. Provide employment to over 1 million along with
existing 2 lakh38 thousand.
2. Increase GDP-1.2 %(1990) to 7.5% in 2012.
3. Revenue in billions-100bnUS$(2012)
Export-69.1 billion
Domestic Revenue-32.7 billion.
Its connected with every field- Education , medicine and researches.
61. BPO
Hardware and Software key to success of IT sector.
2014- Avg. Revenue-147bn US$
Export- 99bn
Domestic Revenue- 48bn
Connected with education , banks etc
Encourage to have 30% of women related with IT.